Financial Abuse
Financial abuse is a form of family violence, and while some forms of family violence can be avoided by the occurrence of a physical separation, financial abuse can continue after a separation occurs. Financial abuse is the control or manipulation of money by one party over another. It can be very isolating for victims as they will often become financially dependent on their abusers.
What is financial abuse?
Often occurring between partners, financial abuse is a pattern of behaviour where someone controls your money, stops you from being financial independent or prevents you from earning your own income.
Financial abuse can involve behaviours designed to sabotage your income and access to money. This can take the form of someone preventing you from being in education or employment, limiting your working hours, taking your pay or directing your wages to their bank accounts, taking the children’s money and refusing to let you access a bank account held either in your name or joint names.
Financial abusers will often restrict how you use money and the things that you own. They may control when and how money is spent, dictate what you can buy and check your receipts/statements. They may make you keep detailed records of every purchase and require you to justify each purchase made. They may control the use of mobile phones and motor vehicles and insist on the house and bank accounts being held in their name.
Financial abuse will also include an exploitation of your economic situation. This can occur through someone causing damage to your property, refusing to contribute to household expenses, misusing joint monies, insisting on all liabilities being in your name and incurring debts in your name without your knowledge.
How is financial abuse treated under Family Law?
Financial abuse is captured under the Family Law Act 1975 (Cth) within the definition of family violence. Since 10 June 2025, the Family Law Act has been expressly updated to outline the behaviours that might constitute financial abuse of a family member including in connection with dowry practices.
In property proceedings, the Court has the power to make adjustments to the legal interests held in property of parties to marriage under section 79 through considering both the effect of family violence on the contributions made during the relationship and the impact of family violence on future circumstances. In Boulton & Boulton [2024] FedCFamC1A 132 the Full Court discussed that the impact of family violence, including financial abuse, can be considered against past contributions and the future earning capacity where there is a link. For example, where one party prevents the other from obtaining or maintaining employment through financial abuse, that will often directly impact the future earning capacity of the party.
In parenting proceedings section 60CC of the Act states that the Court must consider “what arrangements promote the safety (including safety from being subjected to, or exposed to, family violence, abuse, neglect, or other harm)” of both the child and each person with care of the child. In the recent case of Sayed & Rehmann [2025] FedCFamC1A 145, the Court held that the financial abuse perpetrated by the father against the mother through fraud held equal weight as the physical violence perpetrated in assessing the ongoing risks of family violence to the children.
What steps can I take?
The question of whether certain conduct will amount to financial abuse is answered on a case-by-case basis, however the first step is to reach out to and seek legal advice. Our experienced team at Dorter Family Lawyers & Mediators can provide guidance tailored to your specific circumstances and help navigate the Court process in the most efficient way possible.
Call us on (02) 9929 8840 or click here.
